GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.2165; (P) 1.2295; (R1) 1.2388; More…

GBP/USD’s fall continues today and reaches as low as 1.2084 so far. Intraday bias remains on the downside an fall from 1.3514 is targeting 1.1958 low. On the upside, above 1.2273 minor resistance will turn intraday bias neutral and bring consolidations first. But recovery should be limited well below 1.2725 support turned resistance to bring another fall.

In the bigger picture, current development suggests that price actions from 1.1946 (2016 low) are merely a consolidation pattern, with the third leg completed at 1.3514. Rejection by 55 month EMA also solidify long term bearishness. Focus is back on 1.1946 low. Decisive break there will resume larger down trend from 2.1161 (2007 high). This will remain the favored case as long as 1.3514 resistance holds.